OMVIC Certification Course Manual Quiz

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Questions and Answers

The Motor Vehicle Dealers Act (MVDA) is a federal law that governs the retail automotive industry in Ontario.

False (B)

Which THREE of the following does the Ontario Motor Vehicle Industry Council (OMVIC) do?

  • Administers the Motor Vehicle Dealers Compensation Fund
  • Receives and investigates complaints from consumers (correct)
  • Regularly inspects dealers
  • Works to improve professionalism in the automotive industry
  • Registers dealers and salespeople (correct)
  • Disciplines and prosecutes dealers and salespeople (correct)

Which of the following is required to be included in an advertisement showing the price of a vehicle for sale, if the price is shown?

  • Administration fees
  • HST
  • Freight charges
  • Pre-delivery inspection charges
  • Government levies
  • All of the above (correct)
  • Only freight and pre-delivery inspection charges
  • Only administration fees

Which of the following statements is TRUE about a used vehicle being sold “as-is”?

<p>The dealer must state in writing that the vehicle is not roadworthy or mechanically sound (C)</p> Signup and view all the answers

A dealer must disclose in writing when a motor vehicle had damage from a collision or other incident that cost how much or more?

<p>$3,000 (B)</p> Signup and view all the answers

A dealer must give the customer all of the following information when they sell a vehicle to another registered dealer EXCEPT:

<p>A list of the most recent safety standards (E)</p> Signup and view all the answers

If a customer cancels a contract after signing it and before delivery of the vehicle, the dealer is not legally required to return the customer's deposit.

<p>False (B)</p> Signup and view all the answers

A dealer can refuse to give a customer their old part back after it has been removed and replaced during a repair.

<p>False (B)</p> Signup and view all the answers

A dealer is required by law to give the customer a 90 day or 5,000 km warranty on any replacement parts.

<p>True (A)</p> Signup and view all the answers

A dealer must provide a customer with a written estimate for repairs unless the customer specifically waives this right.

<p>True (A)</p> Signup and view all the answers

If a dealer is selling a vehicle as-is, they can give a customer a Safety Standards Certificate.

<p>False (B)</p> Signup and view all the answers

A vehicle must be branded as either “irreparable”, “salvage”, “rebuilt” or “none” before it can be sold in Ontario.

<p>True (A)</p> Signup and view all the answers

Dealers are not legally required to check for liens against vehicles they are selling.

<p>False (B)</p> Signup and view all the answers

What does the acronym “CAMVAP” stand for?

<p>Canadian Motor Vehicle Arbitration Plan (C)</p> Signup and view all the answers

Dealers can only use dealer plates on vehicles that they own and are part of their inventory for sale.

<p>True (A)</p> Signup and view all the answers

A dealer can drive a vehicle with dealer plates for personal reasons.

<p>True (A)</p> Signup and view all the answers

What is one of the main purposes of a Used Vehicle Information Package (UVIP)?

<p>All of the above (D)</p> Signup and view all the answers

A dealer is required to provide a UVIP to all buyers.

<p>False (B)</p> Signup and view all the answers

A Safety Standards Certificate (SSC) is a guarantee that the vehicle has been repaired properly and is roadworthy.

<p>False (B)</p> Signup and view all the answers

A retailer who is not a registered dealer can buy vehicles at a wholesale auction.

<p>True (A)</p> Signup and view all the answers

The Motor Vehicle Dealers Compensation Fund protects consumers when a dealer goes out of business and a customer cannot get their deposit back.

<p>True (A)</p> Signup and view all the answers

Flashcards

What is the Motor Vehicle Dealers Act (MVDA)?

The law that regulates the retail automotive industry in Ontario.

What is OMVIC?

The agency responsible for enforcing the MVDA in Ontario.

What is the Motor Vehicle Dealers Compensation Fund?

A sum of money set aside to help consumers who experience losses in certain situations.

What is the Transaction Fee Program?

A fee dealers must pay OMVIC for each vehicle they sell or lease, including fleet and as-is transactions.

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What is a Proposal in the registration process?

A written notice that OMVIC issues stating their intention to refuse or revoke a registration, explaining the reasons for the decision.

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What is the Licence Appeal Tribunal (LAT)?

The independent panel that reviews proposals from OMVIC regarding dealer and salesperson registration.

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What is an 'Interested Person' in the MVDA context?

A person who benefits from, or has control over, a car dealership, with potential influence on its operations.

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What is a Salesperson in the MVDA context?

An individual employed by a dealer, registered with OMVIC, to buy and sell vehicles on the dealer's behalf.

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What is an Outside Ontario Dealer in the MVDA context?

A dealer who isn't registered outside of Ontario but buys vehicles from exempt wholesale auctions to export them outside of Ontario.

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What is a General Dealer (New and Used subclass) in the MVDA context?

A dealer who buys, sells, or trades in both new and used vehicles.

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What is a General Dealer (Used subclass) in the MVDA context?

A dealer who buys, sells, or trades in only used vehicles, not new cars.

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What is a Wholesaler in the MVDA context?

A dealer who buys, sells, or trades vehicles only with other registered dealers, not directly with the public.

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What is an Exporter in the MVDA context?

A dealer whose main focus is buying and selling vehicles for export outside of Ontario.

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What is a Lease Finance Dealer in the MVDA context?

A dealer who primarily leases vehicles to consumers for terms longer than 120 days.

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What is a Fleet Lessor (Commercial Lessor subclass) in the MVDA context?

A dealer who leases vehicles to businesses and individuals for business purposes.

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What is a Fleet Lessor (Short-term Lessor subclass) in the MVDA context?

A dealer who leases vehicles to consumers for short-term periods, usually less than four months.

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What is false or misleading advertising?

Advertising that contains false or misleading information about a product or service.

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What is an 'Advertising Order' issued by OMVIC?

An action taken by OMVIC to require a dealer to stop a particular advertisement, and possibly publish a correction.

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What is a Consumer in the MVDA context?

A person who buys, sells, or leases a vehicle for personal, family, or household purposes and is not a business.

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What is a Corporation in the MVDA context?

A legal entity created under the law, separate from its individual owners and with its own legal rights and responsibilities.

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What is a Curbsider?

An illegal seller who operates without proper licensing, often selling misrepresented, damaged, or stolen vehicles.

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What is an Independent Contractor in the MVDA context?

An individual who works independently and contracts to provide specific services for another person or entity, but is not an employee.

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What is a Lease in the MVDA context?

A secure agreement where possession of a vehicle is transferred to the lessee (renter), while ownership remains with the lessor (owner).

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What is an Officer in the MVDA context?

A person who has a designated role within a corporation, responsible for specific functions and responsibilities.

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What is a Sole Proprietorship in the MVDA context?

A business structure where the owner is the only person responsible for the business's operations and liabilities.

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What is a Trade in the MVDA context?

A general term that encompasses various interactions related to vehicles, including buying, selling, leasing, advertising, or negotiating.

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Who is the Person in Charge of a dealership?

A person who is in charge of the day-to-day operations of a dealership, responsible for making sure things run smoothly.

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What is a Dealer who is not a Fleet Lessor or Lease Finance Dealer?

A dealer who buys and sells vehicles for their own account, as opposed to representing a manufacturer or another party.

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Who is a Registered Salesperson in the MVDA context?

An individual who is registered with OMVIC to sell vehicles on behalf of a dealer.

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What is a Registered Dealer in the MVDA context?

A dealer who has a valid registration with OMVIC to operate a dealership.

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What is an Exporter?

A business that buys and sells vehicles for the purpose of exporting them outside of the province or country.

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Study Notes

OMVIC Certification Course - Student Manual

  • This student manual is for the Automotive Certification Course, offered by the Automotive Business School of Canada at Georgian College, in collaboration with OMVIC
  • The course is mandatory for all new dealers and salespeople in Ontario
  • The manual covers 18 chapters with review questions at the end of each
  • Different question types are used, including multiple choice, true-false, and fill-in-the-blank
  • The manual contains a disclaimer stating it is not legal advice, and students should consult a lawyer for legal advice regarding Ontario laws and regulations
  • The manual includes the Motor Vehicle Dealers Act, 2002, the Consumer Protection Act, 2002, and other relevant laws
  • The course provides 12 weeks to complete the course material and pass a test with a minimum 75%
  • Registration in this course does not automatically register you with OMVIC
  • "C.A.L.E. - Certified in Automotive Law and Ethics” designation is given to those who pass (along with a certification letter and pin)
  • The course is designed to build trust and strengthen the credibility of automotive dealers and salespeople in the eyes of consumers

Automotive Regulations in Ontario

  • The Ontario Motor Vehicle Dealers Act (MVDA) is the law that governs the retail automotive industry in Ontario
  • The Ontario Motor Vehicle Industry Council (OMVIC) is responsible for enforcing the MVDA
  • OMVIC is responsible for dealer registration, inspecting dealers, investigating consumer complaints, educating dealers and salespeople, and disciplining those who don't comply with regulations
  • OMVIC has a Transaction Fee Program to help cover the costs of their responsibilities
  • The dealer must pay the transaction fee per vehicle sold in Ontario
  • Dealers are not allowed to make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material
  • OMVIC can issue an advertising order, requiring the dealer to stop the advertisement and retract (take back) the information or publish a correction
  • The Ontario government has a Licence Appeal Tribunal (LAT) that can review OMVIC proposals to refuse, suspend, or revoke registrations
  • There are designated classes of dealers (General Dealer; New and Used Subclasses; Used Subclass; Broker; Wholesaler; Exporter; Outside Ontario Dealer; Lease Finance Dealer; Fleet Lessor; Commercial Lessor; Short-Term Lessor)

Specific Topics Covered in the Student Manual

  • Introduction to the course (Chapter 1)
  • Dealer premises and records (Chapter 3)
  • Contract requirements (Chapter 4)- new, used vehicles, leases, trade-ins, and consignment sales
  • Retail disclosure requirements (Chapter 5)
  • Rescission – cancelling a contract if a dealer doesn’t make disclosures (Chapter 6)
  • Wholesale disclosures (Chapter 7)
  • Disclosure in advertising (Chapter 8)
  • Extended warranties and service plans (Chapter 9)
  • Enforcing the MVDA (Chapter 10)
  • Avoiding curbsiders (Chapter 11)
  • Motor Vehicle Dealers Compensation Fund (Chapter 12)
  • Consumer Protection Act (CPA) (Chapter 13)
  • Sale of Goods Act (Chapter 16)
  • Code of Ethics Regulations (Chapter 17)
  • A variety of topics (Chapter 18)

Disclaimer

  • The information in the manual is not legal advice. Users should consult a lawyer for legal advice.

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